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28 Sep 2019
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:
Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $266,740 $248,130 Accounts receivable (net) 96,630 89,120 Inventories 272,790 263,860 Investments 0 102,220 Land 139,910 0 Equipment 300,960 233,280 Accumulated depreciationâequipment (70,460) (62,910) Total assets $1,006,570 $873,700 Liabilities and Stockholders' Equity Accounts payable $182,190 $172,120 Accrued expenses payable 18,120 22,720 Dividends payable 10,070 7,860 Common stock, $10 par 54,350 42,810 Paid-in capital: Excess of issue price over par-common stock 204,330 118,820 Retained earnings 537,510 509,370 Total liabilities and stockholdersâ equity $1,006,570 $873,700
Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The investments were sold for $92,000 cash.
The common stock was issued for cash.
There was a $69,200 credit to Retained Earnings for net income.
There was a $41,060 debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Merrick Equipment Co. Statement of Cash Flows For the Year Ended December 31, 20Y9 Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ Cash flows from (used for) investing activities: $ Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities $ Cash at the beginning of the year Cash at the end of the year $
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:
Dec. 31, 20Y9 | Dec. 31, 20Y8 | ||||
Assets | |||||
Cash | $266,740 | $248,130 | |||
Accounts receivable (net) | 96,630 | 89,120 | |||
Inventories | 272,790 | 263,860 | |||
Investments | 0 | 102,220 | |||
Land | 139,910 | 0 | |||
Equipment | 300,960 | 233,280 | |||
Accumulated depreciationâequipment | (70,460) | (62,910) | |||
Total assets | $1,006,570 | $873,700 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable | $182,190 | $172,120 | |||
Accrued expenses payable | 18,120 | 22,720 | |||
Dividends payable | 10,070 | 7,860 | |||
Common stock, $10 par | 54,350 | 42,810 | |||
Paid-in capital: Excess of issue price over par-common stock | 204,330 | 118,820 | |||
Retained earnings | 537,510 | 509,370 | |||
Total liabilities and stockholdersâ equity | $1,006,570 | $873,700 |
Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:
Equipment and land were acquired for cash.
There were no disposals of equipment during the year.
The investments were sold for $92,000 cash.
The common stock was issued for cash.
There was a $69,200 credit to Retained Earnings for net income.
There was a $41,060 debit to Retained Earnings for cash dividends declared.
Required:
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
Merrick Equipment Co. | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 20Y9 | ||
Cash flows from operating activities: | ||
$ | ||
Adjustments to reconcile net income to net cash flow from operating activities: | ||
Changes in current operating assets and liabilities: | ||
Net cash flow from operating activities | $ | |
Cash flows from (used for) investing activities: | ||
$ | ||
Net cash flow used for investing activities | ||
Cash flows from (used for) financing activities: | ||
Net cash flow from financing activities | ||
$ | ||
Cash at the beginning of the year | ||
Cash at the end of the year | $ |
Collen VonLv2
28 Sep 2019